Tokyo Stock Exchange Halted Trading on 1st Oct Due to Technical Glitch, Resume on 2nd Oct
2nd October 2020 | Hong Kong
The world’s 3rd largest stock exchange Tokyo Stock Exchange (TSE) resumed trading on Friday (2/10/20), after a full-day trading suspension by Tokyo Stock Exchange on Thursday (1/10/20) caused by a technical glitch. All orders on Thursday will be cancelled, and all prices on Friday will be referenced to Wednesday’s closing prices (30/9/20).
” Tokyo Stock Exchange (TSE) Stopped Trading for 1 Day in Technical Glitch “
Technical Problem – Unable to Distribute Market Information
According to Japan Exchange Group, operator of Tokyo Stock Exchange (TSE), the suspension of trading was due to a technical problem at its “Arrowhead trading system”. A switch to a backup had failed and market information could not be distributed. (The Arrowhead trading system is developed by Fujitsu)
Summary:
- Tokyo Stock Exchange (TSE) stops trading for 1 day
- Technical glitch, unable to send market information
- Suspend trading on Thursday (1/10/20)
- Resume trading on Friday (2/10/20)
Japan Exchange Group (JPX):
3rd October 2020 (Wednesday) | JPX is the operator of Tokyo Stock Exchange (TSE)
“Today, due to a hardware failure, the switchover from the failed device to the backup device did not work properly, and as a result, market information could not be distributed.
TSE is currently planning to replace the hardware and taking steps, including other maintenance, to ensure normal trading from tomorrow onwards. If the system were to reboot during the day, it would cause confusion for investors and market participants, which would make it difficult to execute smooth trading. Therefore TSE has decided to halt all listed symbols entire today after consulting with market participants. TSE sincerely apologizes for any inconvenience caused to investors and the people related to stock market.”
Tokyo Stock Exchange (TSE) Previous Suspensions
The is the first full day and worst-ever outrage, resulting in a full suspension of trading on the Tokyo Stock Exchange (TSE), since the stock exchange have shifted to an electronic system in 1999.
In 2005, trading suspension on TSE lasted more than 4 hours and in 2006, daily trading hours was shortened due to trading volume overload. In 2012, more than 200 securities trading were affected and in 2013, system glitch caused derivatives trading to be shifted offline.
2020 Stock Exchange Halts & Glitches
Stock Exchange suspension happens for a few reasons such as technical glitches, circuit breakers and cyber attacks.
Deutsche Borse – In 2 separate incidents in April and July 2020, electronic trading on Deutsche Borse (leading German Stock Exchange) was halted due to technical glitches.
New York Stock Exchange (NYSE) – In March 2020, New York Stock Exchange (NYSE) halted trading for 15 minutes due to a circuit breaker after S&P 500 decreased by more than 7%. NYSE has 3 levels of trading halt.
NYSE has 3 levels of trading halt:
- Level 1 – 7% decline, 15 mins halt
- Level 2 – 13% decline, 15 mins halt
- Level 3 – 20% decline, trading halt for rest of day
New Zealand Exchange (NZX) -In August 2020, New Zealand Exchange (NZX) was disrupted and halted for 4 straight days after numerous cyber attacks (DDoS – distributed denial of service). The attacks caused an overload of information and internet traffic which overload the computer systems.
Tokyo Stock Exchange (TSE)
Tokyo Stock Exchange (TSE) is the 3rd largest stock exchange in the world. Located in Tokyo (Japan), the stock exchange has a total market capitalization of $6 trillion (2019). Companies such as Toyota, Softbank and NTT Docomo are listed on Tokyo Stock Exchange. Tokyo Stock Exchange was founded in 1878 by the then-Finance Minister, Okuma Shigenobu. It is currently owned by Japan Exchange Group (JPX).
Fast Facts
- Tokyo Stock Exchange (TSE)
- Country: Japan
- Started: 1878
- Total Market Capitalisation: $6 trillion (2019)
- Top Listings: Toyota, Softbank and NTT Docomo
- Website: TSE (JPX)
About Tokyo Stock Exchange
Tokyo Stock Exchange, Inc. (TSE) is a licensed financial instruments exchange under the Financial Instruments and Exchange Act of Japan, which is engaged in the provision of market facilities for trading of securities, publication of stock prices and quotations, ensuring fair trading of securities and other financial instruments, and other matters related to the operation of exchange financial instruments markets.
Visit: TSE (JPX)
About Japan Exchange Group
Japan Exchange Group, Inc. (JPX) was established via the business combination between Tokyo Stock Exchange Group and Osaka Securities Exchange on January 1, 2013.
JPX operates financial instruments exchange markets to provide market users with reliable venues for trading listed securities and derivatives instruments. In addition to providing market infrastructure and market data, JPX also provides clearing and settlement services through a central counterparty and conducts trading oversight to maintain the integrity of the markets. In the course of working together as an exchange group to offer a comprehensive range of services, we continue to make every effort to ensure reliable markets and create greater convenience for all market users.
On October 1, 2019, JPX expanded its business into commodity derivatives trading by acquiring Tokyo Commodity Exchange, Inc.
Visit: JPX
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